Real estate is a very flexible investment opportunity. Over the years, many investors have been attracted to this asset class due to its stable returns. Real estate investment in India is a prime opportunity, not just because of the steady profits but also the collateral it provides for loans, tax concessions and deductions, diversified portfolios, etc. As the economy develops, more ways to enter the segment arise, apart from just buying and renting out a house or office space.
The big potentials in the market currently are the upcoming residential projects in Noida, Delhi and Gurugram. The developers (like Max Estates Limited) of these projects are changing how homes feel to the tenants, taking a more wellness-centric approach to design. Commercial properties, too, have switched up their strategy, incorporating art, greenery, convenience, and comfort in their blueprints, tuned to achieve holistic well-being.
Real Estate Investment Trusts
When investing in real estate, it becomes a challenge to do the ideal legwork associated with the decision. Inspecting the different sites can be challenging if the investor is not physically present in the state or country the site is in. But they can still partake in real estate investment in India through REITs or Real Estate Investment Trusts. REITs let investors invest in large-scale projects that the trust owns. These include commercial spaces, apartments, hotels, warehouses, retail properties like shopping malls and stores, and much more.
REITs do not construct their projects. Instead, they buy, fix, and operate properties as a part of their investment portfolio. Investors can put their money in these trusts and get returns in the shape of a share of the profit incurred by the trust.
Infrastructure Investment Trusts
Let’s say an investor just wants to dip their toe in the pool. Then, there are better choices than a large-scale option. Instead, one can look into Infrastructure Investment Trusts. These are mutual fund-like entities that allow direct investment in the form of small amounts for a small portion of the return.
InvITs pool the investment from multiple sources and put them into income-generating assets like the upcoming residential projects in Noida. These are modified versions of REITs designed to suit the specific conditions pertaining to a property. Thus, this is a great option for those testing the waters of the real estate sector or looking to start small and build their way to higher ground.
Exchange Traded Funds
Another mutual fund-like investment option is Exchange Traded Funds. But unlike mutual funds, ETFs can also be traded on the stock exchange, adding an additional layer of security and trust. ETFs specialize in tracking a particular index, sector, or asset. The fund can be structured to track anything, from the asset’s price to a collection of different securities. Since they can hold multiple assets, ETFs are an excellent choice for those looking for a lot of diversification in their portfolio. And since they are a marketable share, they are easy to buy and sell, making this option for real estate investment in India a solid choice.
There are many more ways to invest in real estate in India. One can go simple and buy, fix, and flip projects or participate in fractional ownership and invest in real estate developers.
All the options mentioned in this article are proof that there is a suitable choice for everyone in this malleable sector. High-scale, small-scale, diversified, easy to trade, secure, etc. – you can choose whatever works best for you. That is one of the reasons that make real estate investment in India a good choice. The flexibility it offers, the steady cash inflow, the trustworthy market, and its reputation in the business world all add to its appeal.
Developers have been more creative and experiential in their designs, going beyond the required norms to create an experience unlike any other. With more upcoming residential projects in Noida and other major cities rising and changing the sector’s landscape, now is the perfect time to foray into real estate investment.
